Child Tax Credit Available for the 2010 Tax Return

The Child Tax Credit extension is great news for eligible taxpayers who may be eligible to claim $1,000 per qualifying child. With the announcement of expiring Bush tax rates changing into Obama tax rates for two more years is like music to our ears. The Adoption Credit is available for the 2011 tax year and even more benefits are recently added with an increased tax credit amount. To help with the very expensive process of adopting a child, parents can receive an adoption tax credit of up to $13,170.

Many taxpayers may be wondering how to take advantage of the Child Tax Credit and will not want to miss out on this tax opportunity. The Child Tax Credit can significantly reduce the tax liability for individuals who qualify to claim the tax credit.

Rules and Requirements for Child Tax Credit

The qualifying criteria consists of six tests in order to pass for eligibility and the six tests will remain the same for the 2011 income tax year as well. The six tests are: age, relationship, support, dependent, citizenship, and residence. An adopted child always has the same eligibility as a biological child.

Tax software such as, TurboTax Online can help taxpayers determine if the Child Tax Credit is a possibility to reduce tax liability. Tax return calculators are now available through TurboTax Online as an iPhone app in addition to the tax return calculators offered for free use on their web site. Harbor Financial also offers many tax tools such as, tax return calculators, tax videos, and many "How To" tips when preparing income tax forms.


Tax Forms for Claiming the Child Tax Credit

The 1040EZ tax form or the 1040NR-EZ cannot be used to claim the Child Tax Credit. One of the qualifications for the use of the 1040EZ tax form is having no dependents. Tax form 1040, 1040A, and 1040NR may be used to claim the Child Tax Credit. Using tax software takes the guessing out of choosing the proper tax forms appropriate for certain tax credits. Online tax software companies such as, TurboTax Online are now open for the tax filing season. Federal income tax forms can be prepared today and will be submitted by the tax software company as soon as the IRS starts accepting tax returns. Taxpayers do not have to wait to file income tax returns to claim the Child Tax Credit.

About Harbor Financial

Visit www.harborfinancialonline.com to gain helpful knowledge concerning preparing income tax forms efficiently and accurately. The tax videos provide visual and audio how to lessons guiding the taxpayer through filling out proper forms with full explanations making filling them out easy to understand. For over eight years Harbor Financial has helped thousands of taxpayers prepare and file income tax forms and provides a free tax refund estimator.

Harbor Financial Online is based in Traverse City, Michigan.